PwC talks benefits of free economic zones to Azerbaijan's economy

Economy Materials 3 February 2023 09:54 (UTC +04:00)
PwC talks benefits of free economic zones to Azerbaijan's economy
Sadraddin Aghjayev
Sadraddin Aghjayev
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BAKU, Azerbaijan, February 3. The launch of the Alat Free Economic Zone will be of great benefit to Azerbaijan, Managing Partner of PwC in Azerbaijan Movlan Pashayev told Trend in an interview.

He noted that Azerbaijan is implementing a combined model of free economic zones - both using the experience of various countries and its own initiatives.

"None of the economic zones will be successful unless there is an accurate regulatory system in place and investors understand what they will face and what preferences exist. I would like to note that the benefits of the free economic zones for our country are attracting know-how, further strengthening the country's image, as well as creating a professional and qualified workforce, and accelerating the development of various sectors of the economy," said Pashayev.

According to him, the Azerbaijani model of the free economic zone is currently being implemented in Alat.

"It meets the country's interest and contributes to the attracting of additional investments," he added.

Work is underway in the Alat Free Economic Zone to establish infrastructure, and the first investment contracts have already been signed.

The ceremony of signing the first contract between Azerbaijan’s Alat Free Economic Zone Authority and the Israeli BioPharmax company took place in Baku on September 13, 2022. In accordance with the document, BioPharmax will open a representative office of its company in Azerbaijan - BioPharmax AFEZCO.

The document also said an area of ​​three hectares will be allocated for the Israeli company. At the time, it was noted that BioPharmax intends to use modern equipment in the production of medical products, and the products will be primarily exported.

A transport and logistics hub will also be built on the Alat Free Economic Zone's territory. In addition, a roadway and a railway infrastructure are expected to be built on a 160,000-square-meter site.

Meanwhile, International Finance Corporation (IFC) has signed a memorandum of understanding with Azerbaijan’s Alat Free Economic Zone (AFEZ) to create a framework for advisory and early-stage project development support for companies that would be interested in locating their operations in AFEZ.

In 2022, Azerbaijani Alat Free Economic Zone and the Hualing Free Industrial Zone (FIZ) in Kutaisi (Georgia) signed a memorandum of cooperation. The document was signed by Chairman of the Board of Alat FEZ Valeh Alasgarov and Director General of Hualing FIZ Soso Nibladze.